henriette van eijl presents on social innovation to the sme forum

European CommissionEnterprise and Industry

SME forum 6-7-2011

SME Finance Forum

Working meeting 6-7-2011,Brussels

Disclaimer: The views expressed in this presentation, as well as the information included in it, do not necessarily reflect the opinion or position of the European Commission and in no way

commit the institution.


SME forum 6-7-2011

« The Europe I believein »

“The financial and economic crisis makes creativity and innovation in general,

and social innovation in particular

even more important to foster sustainable growth, secure jobs and boost competitiveness.”

President Barroso at the BEPA Workshop on ‘Europe and Social Innovation’, 20 January 2009


SME forum 6-7-2011

Where can you find social innovators?

From the 2010 SIX social innovation study commissioned by the EC


SME forum 6-7-2011

Social innovation produces innovations that meet a social need by:

Workplace innovation: empowering people

Connect social economy, social entrepreneurs, business, charities, public sector, finance

Strong link to public sector innovation

Street-corner, local, regional, national to EU levels


SME forum 6-7-2011

Social innovation

What are businesses doing here?


SME forum 6-7-2011

Companies see opportunities in social innovation:

1. Increased demand for sustainable or energy-efficient products and services: 32%

2.New services and products for olderconsumers: 15%

3.Education, social- or health services: 12%

Source: Innobarometer 2009 study


SME forum 6-7-2011

Who is funding social innovation already –public funds – some examples?

Social Innovation Funds: • Estonian Development Fund, Social Enterprise

Investment Fund, UK

Innovation Agencies:• TEKES and SITRA (Finland), VINNOVA (Sweden)

European Funds:• European Social Funds • EIB-ESF Progress Microfinance facility • Other Structural Funds: ERDF• Research Framework Programmes and CIP


SME forum 6-7-2011

Who is funding social innovation already –private funds – some examples?

Social banks:• Banco Prossima (IT), Credit Cooperatif (FR), Triodos

(NL),

Commercial investment funds (financial return, then social impact):

• PhiTrust (FR), BonVenture (DE),

Social investment funds (social impact most important):• CAF Venturesome (UK), Fondazione CRT (IT)

Venture philanthropy funds (grants and advice):• Impetus Trust (UK), d.o.b. (NL)


SME forum 6-7-2011

Problem analysis:

Social innovators have commitment, experience and energy.

But: little access to appropriate funding.

Result: no shortage of good ideas, but far too few achieve the impact they could.


SME forum 6-7-2011

What could help? Toolbox of funds:

Investment in ideas: < ~ 25,000 €

Investment in prototypes ~ 300,000 €

Implementation fund < € 30 million

Scaling – jointly with public sector, banks and foundations < € 100 million

Ideas by SIE consortium


SME forum 6-7-2011

Questions to you:• The public sector has funded social innovation in

many ways and for a long time, but what role should the private sector play in funding social innovation?

• What would be the role of different tools offered by the private sector, including cooperative banks – for instance through capital markets or through banking finance?

• How might private investors be empowered to drive positive change?

• What can be done on a European level?

• Where do we want to be in 10 years time? What do we want the finance infrastructure look like?


SME forum 6-7-2011

Thank you for your attention and looking forward cooperating with you!

Your comments and inputs are very welcome on the Social innovation Europe’s website:www.socialinnovationeurope.eu

Henriette VAN EIJL, [email protected]

henriette van eijl presents on social innovation to the sme forum

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